19 October 2004	Tuesday	04 Ramazan 1425

KARACHI, Oct 18: The cotton market on Monday maintained a steady posture despite larger than expected latest arrival figures of phutti into ginneries at 3.613m bales.

For the third fortnight in a row, the figures have maintained their upward drive indicating that the country is just on the threshold of harvesting a good crop after a lean year, brokers said.

However, there was no immediate bearish impact on the prevailing prices as was speculated but the physical business remained light as both buyers and sellers are adjusting to new realities based on supply and demand factors, they said.

According to official figures released by the Pakistan Cotton Ginners Association, total arrivals for the fortnight ended Oct 15 further rose to 3.613m bales from the previous total of 2.173m bales. Out of the total, mills have so far purchased 2.71m bales, leaving an unsold stock of 0.572m bales with the ginners, which are considered higher keeping in view the increased mill demand.

Market sources said ginners might be a bit worried over the larger than expected unsold stocks of lint lying with them as cash amount of about Rs5bn is tied to them, limiting their phutti purchasing power.

But some spinners claim leading ginners are holding on to their positions anticipating further rise in prices and that factor adds to their unsold inventories.

However, next couple of sessions will show what impact the larger crop figure could have on the prevailing prices and whether or not ginners hold on to their unsold positions.

There was a relative lull on the ready business as all the leading players were awaiting the latest arrival figures to chalk out their further line of action in a market ensuring adequate supplies, brokers said.

Official spot rates were quoted at around Rs1,925 per maund but in the ready section some of the deals were done well above them.

Ready offtake was light as ginners mostly held on to their positions. The following are some of the deals, which went through in the Punjab ginneries on Sunday: 1,200 bales, Gojra at Rs1,975 to Rs1,980; 1,000 bales each, Muridwala and Burewala at Rs1,975; 1,000 bales, Bahawalpur at Rs2,000; 500 each Rahimyar Khan and Sadiqabad also at this rate; 400 bales, Vehari at Rs1,950 to Rs1,975.

SINDH VARIETY: 200 bales, Sanghar at Rs1,875; 200 bales, Mirpurkhas at Rs1,850; and 400 bales, Khairpur at Rs1,950.